Congress Is Set to Approve Bill
To Cut Rates on Student Loans

By

Jennifer Corbett Dooren Staff Reporter of The Wall Street Journal

Updated July 13, 1998 12:01 a.m. ET

WASHINGTON -- A popular measure that cuts interest rates on federally backed student loans is moving toward final approval over the objections of President Clinton, who says a provision to give lenders a subsidy is excessive.

But the plan has the strong backing of Congress, as well as student and banking groups. The Senate approved the plan 96-1 late Thursday, and the House backed a nearly identical bill 414-4 in May. The plan is part...